AWE Ltd. provided the following update on the tight gas hydraulic fracture stimulation program being undertaken on the Senecio-2 well in the North Perth Basin, Western Australia.

The Senecio-2 well, which had been fracture stimulated over a five meter perforation interval in the Dongara and Wagina tight sandstone formation, was successfully flow-tested for more than 40 hours through the well test separator package.

A stabilized flow rate of 1.35 MMcf/d of gas was recorded and the test produced a total of 4.65 MMcf of gas and approximately 65 bbl of crude oil/condensate over the flow period. The well has been shut-in and longer term pressure build-up testing is underway. Pressure gauges installed in the well are scheduled to be recovered in four to six weeks to ascertain accurate reservoir pressure data.

The data gathered from the flow-test, combined with recently acquired 3-D seismic data over the field and subsequent analysis, is expected to provide sufficient information to build a reservoir model that may form the basis for any future development plans.